Philips (NYSE: PHG) reported Q1 EPS of EUR0.25, EUR0.04 better than the analyst estimate of EUR0.21. Revenue for the quarter came in at EUR4.1 billion versus the consensus estimate of EUR4.32 billion.

Outlook

In an uncertain macro environment, Philips’ outlook for full year 2025 is updated to include the assumed impact of currently announced tariffs. This includes current bilateral US-China and rest of world tariffs, the resumption of the paused US tariffs on July 9 and excludes potential wider economic impact.

Philips’ outlook for comparable sales growth remains unchanged at 1%-3%

Adjusted EBITA margin range to be 10.8%-11.3%, including an estimated net tariff impact of EUR 250-300 million after substantial tariff mitigations, a 100 bps reduction versus previous outlook, based on the above-referenced assumptions

As a result, free cash flow to be slightly positive for the full year, after the payout of EUR 1,025 million Philips Respironics recall-related medical monitoring and personal injury settlements in the US

The company continues to anticipate 2025 performance will be skewed toward the latter part of the year, with Q2 showing modest improvement from Q1.

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